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A major spanner has been hurled into Britain's North Sea oil production. That's after refinery workers in Scotland went on a two-day strike over their pensions. The move has lead to the shutdown of a BP pipeline which supplies Britain with about half of its oil. The government has sought to calm the public saying there will be no overall fuel shortages. The first strike to close a British refinery in more than 70 years has stoked broader supply-side worries on oil markets. U.S. light crude has been threatening the 120 dollar mark. It touched an all-time high of 119 dollars 53 cents the barrel before easing back. London Brent crude is not far behind either, trading above 117 dollars the barrel. Even a strengthening U.S. dollar couldn't stop oil prices heading north. That's because geo-political events beyond Britain are coming into play too. Fresh militant unrest in oil exporter Nigeria is driving crude prices higher. As is renewed international hostility over Iran's nuclear programme. Over the weekend, Iran's foreign ministry defiantly played down the threat of U.S. military action. But the OPEC nation warned any intervention would have painful consequences for the region and the world. Darcy Lambton, Reuters. COMPANIES MENTIONED: SYMBOLS: